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B-173432 1 (1971-12-15)

handle is hein.gao/gaobablee0001 and id is 1 raw text is: *EWTRITED - Not to be released Outsde toI-.,1 ...Ac it g Office except on the basis of specific approval ) 9 76 by the Office of Congressional Re~atlonsiS COMPTROLLER GENERAL OF THE UNITE TES RELEASED 1977 B-173432 7 Dear Mr. Chairman: This is in further reference to your request of June 17, 1971, that we investigate certain charges against the Chi- cago District of the Army Corps of Engineers made in a letter //to you dated March 31, 1971. These charges, pertaining to construction of TNT lines and related facilities at the New- port, Indiiana, and Joliet, Illinois, Army ammunition plants, are summarized as follows: (1) Corps officials had given preferential treatment and inside information to Hi-Way Elec- tric Company, a firm which received much of the subcontract work, (2) there was collusion between Corps officials and bidders and among bidders in the award of contracts, and (3) the Corps had mismanaged the Newport and Joliet projects. We found that the charges of an improper relationship between Corps officials and Hi-Way and collusion in the award- ing of contracts were based on hearsay and rumor but we could not find any supporting documentary evidence. We found also that the contracts had some cost growth and some delays in completion. Each of these matters is discussed below in more detail. In September 1968 the Corps, because of the urgency of TNT requirements, awarded a cost-plus-a-fixed-fee contract to a joint venture of Fegles Construction Company, Inc., and C&I/Girdler, Inc., for the construction of the Newport TNT project. Subsequently TNT requirements eased and the Corps decided to convert the project to a fixed-price-contract ba- sis. The Corps terminated the Fegles-Girdler contract in December 1969 and later awarded a series of 15 formally ad- vertised contracts to complete the Newport project; the last contract was awarded in March 1971. The contracts for the Joliet TNT project also were formally advertised. The author of the March 31, 1971, letter to you informed us that he had worked for Fegles on previous projects at the Joliet plant in 1965 and on the Newport TNT project later and that he had been in charge of all administrative matters in- cluding purchasing and accounting. He could not provide 50TH ANNIVERSARY 1921-19711

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